South Korea's five largest won-based cryptocurrency exchanges recorded a combined average daily trading volume of US$305 million over a seven-day period in July 2026, down from US$2.82 billion during a comparable period in July 2025, representing an 89% decline, according to trading data analysis. The downturn coincided with a 114.44% rally in the benchmark KOSPI index over the 12 months to 22 July, reflecting a shift in retail investment activity toward equities. Lower trading volumes are reducing transaction fee income for exchanges, with some platforms selling digital asset holdings to offset weaker revenue.
Trading Volume Fell 89% Across Five Major Won-Based Exchanges
Analysis of trading data from South Korea's five largest won-based cryptocurrency exchanges found combined average daily trading volume fell to US$305 million from US$2.82 billion over comparable seven-day periods in July 2025 and July 2026. An equal-weighted comparison across the exchanges showed an average year-on-year drop of roughly 77%. The decline occurred as retail investors directed more speculative capital toward equities.
KOSPI Index Climbed 114.44% in 12 Months to 22 July
South Korea's benchmark KOSPI index climbed 114.44% in the 12 months to 22 July despite easing from its June peak. Analysts said the contrasting performance between the stock market and cryptocurrency trading volumes suggests retail investors are favouring equities over digital assets.
Korbit Sold 15 Bitcoin and 60 Ether to Raise 1.6 Billion Won
Weaker trading volumes are placing pressure on exchange revenues because local platforms rely heavily on transaction fees. Reports indicate some exchanges have responded by selling digital asset holdings. Korbit reportedly raised about 1.6 billion won through the sale of 15 Bitcoin and 60 Ether, equivalent to about US$1 million.
Financial Institutions Position for Won-Backed Stablecoins and Tokenised Assets
Research cited in the analysis said the slowdown reflects more than softer cryptocurrency prices. Repetitive market narratives, disappointing projects and stronger opportunities in equities have contributed to retail investor fatigue. Researchers described the market as undergoing a structural transition, with financial institutions positioning for opportunities including won-backed stablecoins, tokenised real-world assets and exchange investments as the regulatory framework develops.
FAQ
What happened to South Korea's cryptocurrency trading volume in July 2026?
Combined average daily trading volume across South Korea's five largest won-based cryptocurrency exchanges fell to US$305 million in July 2026 from US$2.82 billion in July 2025, representing an 89% decline.
How did the KOSPI index perform over the 12 months to 22 July?
The benchmark KOSPI index climbed 114.44% in the 12 months to 22 July despite easing from its June peak.
Why did Korbit sell Bitcoin and Ether?
Korbit reportedly sold 15 Bitcoin and 60 Ether to raise about 1.6 billion won (approximately US$1 million) in response to weaker trading volumes and reduced transaction fee income.
